South Korea's stringent regulations are expected to lead to an outflow of over 160 trillion won in crypto funds by 2025.

In 2025, South Korean investors transferred over 160 trillion won (approximately US$110 billion) to overseas trading platforms due to stricter domestic regulations on cryptocurrency exchanges. The delayed enactment of the Digital Asset Basic Act, particularly regarding stablecoin regulation, has created a structural regulatory vacuum in South Korea's cryptocurrency market. Domestic exchanges are only permitted to conduct spot trading, unable to offer leveraged products, derivatives, or other complex instruments to retail investors, gradually weakening their competitiveness and driving funds to overseas platforms such as Binance and Bybit. Meanwhile, the number of South Korean cryptocurrency investors has increased to approximately 10 million. While domestic exchanges like Upbit and Bithumb maintain high revenues, overall growth is slowing, and calls for regulatory reform continue to rise.